The Central Bank of Kenya (CBK) has licensed 29 new digital lenders, bringing the total number of licensed providers to over 150. This expansion follows a surge in applications, with more than 900 digital credit providers submitting requests since March 2022. The CBK has been actively engaging with applicants throughout the process.
The new licenses have contributed to a significant increase in loan disbursement, pushing the total amount issued by licensed digital lenders to Sh165.1 billion. This marks a substantial growth from previous figures, reflecting the rapid expansion of the digital credit sector in Kenya. The CBK has emphasized its commitment to regulating the industry while supporting financial inclusion.
The licensing process has been part of a broader effort to formalize the digital lending landscape. Since the start of the year, the CBK has been working to ensure that all providers meet stringent regulatory standards. This includes requirements related to data protection, consumer rights, and financial transparency. The recent approvals are seen as a step toward stabilizing the sector and protecting borrowers from predatory practices. The CBK has also noted that it continues to monitor the market closely to maintain a balanced regulatory environment.
